Question 1

Multinational companies adhere to the notion that the products that succeed in the home country are superior and, therefore, can be sold everywhere without adaptation.

Accepted Answer

Multinational companies recognize the need for adaptation of products in different markets. They understand that what works in their home country may not necessarily work in other countries due to differences in culture, language, and preferences. As such, they often engage in market research and product modification to ensure their products are suitable for each market they enter.

Question 2

Ethnocentric companies are sometimes referred to as global companies.

Accepted Answer

Ethnocentric companies focus on their home country's culture and values, while global companies are inclusive of different cultures and values from around the world.

Question 3

A company's competitive advantage exists only in its price differentiation strategies.

Accepted Answer

A company's competitive advantage can exist in various factors such as product quality, brand reputation, customer service, technological innovation, and more. Price differentiation is just one of the many possible strategies.

Question 4

Global marketing requires marketers to behave in a way that is global and local at the same time by responding to similarities and differences in world markets.

Accepted Answer

Global marketing involves looking at the similarities and differences between markets around the world and adapting marketing strategies accordingly. Marketers must be able to think globally while still being sensitive to the local cultural, economic, and social factors that influence consumer behavior in different regions.

Question 5

The old marketing concept focused on a customer-centric marketing approach.

Accepted Answer

The old marketing concept was more product-centric, focusing on selling what the company made rather than understanding and meeting the needs and wants of the customer. The modern marketing concept is customer-centric, emphasizing understanding and satisfying the customer's needs.

Question 6

One difference between domestic marketing and global marketing is the scope of activities.

Accepted Answer

Domestic marketing focuses on marketing activities within a specific country, while global marketing involves marketing activities in multiple countries and often different regions of the world. Therefore, the scope of activities in global marketing is broader than in domestic marketing.

Question 7

Geocentric companies are based on a belief of home-country superiority.

Accepted Answer

Geocentric companies adopt a global approach, integrating the best practices from both the home country and host countries without the belief in the superiority of the home country.

Question 8

Global companies view world regions as unique and seek to develop an integrated regional strategy.

Accepted Answer

Global companies recognize the differences in various world regions and try to develop strategies that take into account the unique cultural, economic, and political factors of each region. This helps them to better target their offerings and improve their overall performance in each region.

Question 9

Geocentric companies are integrated on a global scale.

Accepted Answer

Geocentric companies have a global perspective and operate on an integrated scale, utilizing resources and talent from around the world.

Question 10

Marketing discipline varies from one region to another.

Accepted Answer

The answer of Marketing discipline varies from one region to...

Question 11

A regiocentric manager views the world outside his area of interest with an ethnocentric orientation.

Accepted Answer

A regiocentric manager prioritizes their own region above others, but when dealing with areas outside their region, they may exhibit an ethnocentric orientation, viewing those areas as less relevant or inferior.

Question 12

Ethnocentric companies cater to the different needs of different world regions.

Accepted Answer

Ethnocentric companies believe that their home country's way of doing business is the best way, and they often impose these practices on their international operations without adapting to local needs and customs. Therefore, they do not typically cater to the different needs of different world regions.

Question 13

A company engaging in global marketing must standardize all elements of the marketing mix everywhere in the world.

Accepted Answer

A company may need to adapt certain elements of the marketing mix based on cultural, legal, and economic differences in each country it operates in. This is known as localized marketing. However, some elements may still be standardized to maintain consistent brand image and communication.

Question 14

Management vision is a driving force for global integration.

Accepted Answer

Management vision sets the direction and goals for a company's overall strategy, which includes global integration. When a company has a strong vision for international expansion and collaboration, it can drive efforts towards global integration.

Question 15

The strategic concept of marketing focuses on customer satisfaction in a socially responsible and sustainable way.

Accepted Answer

The strategic concept of marketing aims to satisfy customer needs and wants in a way that is socially responsible and sustainable, taking into account the long-term impact on the environment and society.

Question 16

Marketers can always directly apply experience from one country to another or from one market to another.

Accepted Answer

Cultural and social differences between countries and markets can significantly impact consumers' behavior and preferences, making it challenging to apply the same marketing tactics across different locations. Marketers need to conduct market research and adapt their strategies accordingly to be successful in different regions.

Question 17

Market capitalization is defined as a company's total revenues in a given accounting period.

Accepted Answer

Market capitalization is defined as the total value of a company's outstanding shares of stock, calculated by multiplying the current stock price by the number of outstanding shares. It is not based on a company's total revenues.

Question 18

A polycentric orientation is diametrically different from an ethnocentric orientation.

Accepted Answer

A polycentric orientation focuses on local differences and adapts to the culture of the host country, while an ethnocentric orientation assumes that the practices and values of the parent company's culture are superior and should be applied in all countries. These two orientations are opposite to one another.

Question 19

Cost is a restraining force affecting globalization.

Accepted Answer

Cost is a significant factor that affects the globalization process. The cost of transportation, communication, and labor affects the price competitiveness of products in the global market. High costs can deter foreign investment and limit the expansion of a company into the global market.

Question 20

A polycentric company views foreign operations as being secondary or subordinate to domestic operations.

Accepted Answer

A polycentric company views foreign operations as being equal in importance to domestic operations, and may even allow subsidiaries to make independent decisions and adjust to local conditions.

Quiz 1: Introduction to Global Marketing